The Accuracy of Profit Forecasts of Malaysian IPOs

Abstract

The paper examines the accuracy of profit forecasts reported in prospectuses of newly listed ses on the Kuala Lumpur Stock Exchange. Accuracy is measured by forecast errors. forecast errors and squared forecast errors. The level of forecast accuracy appears to than that reported in studies in developed markets. An attempt to model the errors ion of firm specific characteristics and of Big Six/non-Big Six auditor firms proved Tite value. There was no signiicant relationship between forecast errors and stock price upon listing.